Detailed Answer
In South Dakota, health care providers and the state have statutory liens on your recovery for medical services related to a personal injury. You must satisfy these liens before you finalize and distribute your settlement or judgment. Below is a step-by-step overview under South Dakota law.
1. Identify All Potential Liens
South Dakota Code Chapter 34-18A creates a lien in favor of any hospital or medical services provider that treated you for injuries caused by another party. Additionally, the State may assert a medical assistance lien under SDCL 28-6A-17 if you received Medicaid or state-funded care. To start, request from your attorney or claims adjuster a list of all providers who have filed liens.
2. Confirm Lien Validity and Amounts
Each lien must meet statutory requirements. Under SDCL 34-18A, a provider must file its lien in the office of the clerk of courts in the county where services were rendered no later than 180 days after the first treatment. Review each lien notice to ensure accuracy:
- Provider name, address, and treatment dates
- Total billed amount and balance due
- Signature of an authorized official
For state medical assistance liens, verify the amount asserted by the Department of Social Services and confirm whether you have a right to a hearing to dispute that amount.
3. Negotiate Reductions and Payment Terms
Providers often accept less than the billed amount. Your attorney or claims adjuster can negotiate:
- Percentage reductions (e.g., 30–50% off billed charges)
- Structured payment plans if settlement funds come in installments
State liens for medical assistance may have limited room for negotiation, but you can request an administrative review under SDCL 28-6A-17.
4. Allocate Settlement Funds and Draft Payoff Letters
Once negotiated, draft payoff letters or stipulations indicating the agreed amount due each provider. Include in your settlement distribution sheet the exact amounts to each lienholder, attorney fees, case expenses, and your net recovery. This breakdown guides the settlement trustee or court clerk in disbursing funds correctly.
5. Obtain Releases and File Satisfaction Notices
After payment, obtain a written release of lien from each provider. Then file a satisfaction of lien with the county clerk’s office to clear the title on any related property interests and to show record proof the lien is satisfied. For state medical assistance, submit proof of payment to the Department of Social Services for formal release.
Helpful Hints
- Start early. Lien discovery and negotiation can take weeks.
- Keep meticulous records of all communications and payments.
- Always verify that a lienholder has authority to file under SDCL 34-18A.
- Consider hiring a lien resolution specialist if you face multiple or high-dollar liens.
- Remember that unresolved liens may delay or reduce your net recovery.
Disclaimer: This article provides general information under South Dakota law. It is not legal advice. For guidance tailored to your situation, consult a qualified attorney.